Divorce can be one of the most emotionally and financially stressful experiences of a person’s life. The division of assets during a divorce is supposed to be fair and equitable, but what happens when one spouse tries to hide assets?
Unfortunately, this is a common tactic people use to protect their interests at the expense of their spouse. If you are going through a divorce in Louisiana, it is important to understand what hidden assets are, how they may be concealed, and how the law can help uncover them.
Separate Property vs. Community Property in Louisiana
There are two types of property in Louisiana: separate and community property. Understanding the distinction is important before diving into hidden assets.
- Separate property: Separate property includes property owned by a spouse before the marriage, and inheritances or gifts received by one spouse during the marriage. Separate property typically remains with the original owner during a divorce.
- Community Property: Community property includes most assets acquired during the marriage, such as income, real estate, retirement accounts, and business interests. Both spouses have an equal claim to community property.
A Shreveport property division lawyer can help you evaluate your assets and determine which may be classified as separate or community property. A court will aim to divide community property evenly in a divorce, but if one spouse hides assets to make it appear that there is less to divide, it can lead to an unfair and unlawful outcome.
How a Spouse Might Hide Assets in Louisiana
A spouse might try to hide assets before or during a divorce in many ways.
Some standard methods include:
- Transferring money to friends or family: A spouse might “loan” money to a relative or friend and intend to get it back after the divorce is finalized.
- Overpaying debts or taxes: A spouse might intentionally overpay a credit card or taxes to receive a refund after the divorce.
- Hiding cash: A spouse might withdraw and hoard cash over time in a safe or undisclosed account.
- Delaying bonuses or commissions: A spouse might ask their employer to delay payments or bonuses until after the divorce is final.
- Undervaluing business interests: A spouse may try to downplay the value of a business when it is profitable.
Hidden assets can lead to an unfair division of community property in a divorce.
How Do I Prove My Spouse is Hiding Assets in Louisiana?
Suspecting your spouse is hiding money or property is one thing, but proving it is another. There are legal tools a Shreveport family law lawyer may use to help uncover them.
These include:
- Discovery process: Both parties must make complete financial disclosures during a divorce. Your lawyer can request documents and ask detailed questions that the other spouse must answer under oath during the discovery phase of litigation. Common discovery tools include interrogatories, requests for production of documents, and depositions. Failure to answer truthfully can have serious legal consequences.
- Subpoenas: Your spouse may refuse to cooperate. Your lawyer can issue subpoenas to banks, employers, or investment firms holding retirement accounts. A subpoena will compel a third party to produce records that might reveal undisclosed accounts or transactions.
- Forensic accountants: Forensic accountants can be invaluable in complex cases. These experts can analyze financial records, trace transactions, and look for irregularities that might indicate assets are being hidden. They can also investigate businesses to determine their actual value.
- Tax returns and other financial records: Tax returns, W-2s, 1099s, and bank statements can reveal hidden income or accounts. Comparing past financial statements to current disclosures can expose discrepancies that merit further investigation.
A Shreveport family law lawyer can help you prove that a spouse is hiding assets and hold them accountable in court.
What Happens If My Spouse is Caught Hiding Assets in Louisiana?
Louisiana courts take asset concealment very seriously. The court has several options to correct the injustice if a spouse is caught hiding assets during a divorce.
These include:
- Awarding the hidden asset to the other spouse: A judge may award the full value of hidden assets to the other spouse as a penalty if they are found to be deliberately hiding property.
- Contempt of court: A spouse who lies under oath or refuses to comply with discovery orders can be held in contempt of court. Penalties may include fines, payment of the other spouse’s attorney fees, or jail time.
- Reopening a divorce case: Hidden assets may be discovered after the divorce has been finalized. A court can reopen the case and modify the property division to reflect the true financial picture.
A family law lawyer can help you hold your spouse accountable if they are hiding assets during a divorce. The sooner you involve a lawyer, the more likely hidden assets can be found and addressed before a final judgment is entered.
Suspect Your Spouse of Hiding Assets? Contact a Shreveport Family Law Lawyer Today
Divorce is hard enough without worrying that your spouse is hiding assets. If you suspect hidden assets, do not wait. The law is on your side, and a Shreveport divorce lawyer at Knight Law Firm can help protect your future. Schedule a free consultation today, contact us at (318) 323-2213 to learn more.
